Why am I investing in a mutual fund?

Name: Day / Time: Score: Determine Your Investment Objectives and Understanding Your Risk Profile Like any purchase decision, your selection of a mutual fund scheme should be based on your expectations and the funds' ability to fulfill these goals. It is important to be clear about your investment objective before you enter into a buying decision. (Be sure to read the Handout) If you are planning to build a mutual fund portfolio, the first step is to examine your current situation. Ask yourself questions below (Please answer the following questions): 1. Why am I investing in a mutual fund? 2. What portion of my net worth would I like to set aside for investments (Assuming you have salary already and/or business)? 3. What do I intend to use the gains for? How many years do I have? 4. What is my investment objective? Choose two and Explain. a Capital Appreciation b. Capital Preservation C. Achieving sustainable long-term growth d. Combination of Income and Capital growth 6. What kind of risk am I willing to take in the long run? Discuss you